Cloak and Dagger Inks Fight Counterfeiters – June 2015 M&A Activity
Australian company YPB announced that it has acquired California-based printing company, Continuous Forms Control (CFC), to introduce its covert ink compounds into the US market. YPB develops and manufactures unique ingredients that are blended into inks and coatings and that cannot be seen, damaged or removed from the product or package being printed. This effectively creates a specific “product DNA” which forever identifies that product as the genuine article, discernable to anyone with the corresponding handheld scanners programmed to recognize the specific secret compound. The company anticipates that the packaging, fashion label and pharmaceutical sectors will utilize its printing services at the acquired company to combat counterfeiters who will not be able to match the unique chemical markers blended into the inks. The company completes the loop with its Brand Reporter software that enables field agents to use their smart phones to report suspicious items to corporate headquarters, including photos with geo-located tags. YPB’s most recent investor presentation projects revenues in the US to grow to $10 million as CFC incorporates the covert inks into millions of product labels.
In addition to YPB, other acquirers continue to invest in the two basic elements common to all printing, ink and the underlying substrates. Sun Chemical, the world’s largest ink manufacturer, expanded its reach into Southeast Europe, acquiring full control of its joint venture in the region. Epson, manufacturer of inkjet printing devices, acquired Italian company For.Tex which develops, manufactures and sells specialty inks and coatings used to digitally print textiles.
The consolidation of the distribution of printing papers, the most commons printing substrate, continues at a steady pace. Global paper and pulp distributor Central National-Gottesman added another distributor to its network late last month with the purchase of Los Angeles-based Performance Paper. The acquired company was added to its Spicers division which distributes printing papers throughout the western states. This acquisition marks the fifth printing papers distributor that the family-owned Central National-Gottesman company has acquired since 2012, building on the network begun in 1984 when company acquired Lindenmeyr and shortly thereafter bolted on the Munroe company. On a much smaller scale, Mac Papers, a roll-up of mom-and-pop paper distributors in the Southeast, acquired Packaging Professionals in Lewisburg, Tennessee.
